Many investors and businesses alike are in uncertain times since the pandemic, and many businesses have closed or filed bankruptcy. But despite all this instability, the turnkey real estate investors continue to see success.
Investing in a turnkey property is a great way to get your foot into the world of real estate investment without having to worry about upgrades and tedious construction.
So if you’re looking to invest in real estate to generate some passive income, a turnkey property is a great place to start. Keep reading this guide to find out everything you need to know about turnkey properties.
What Is a Turnkey Property
A turnkey property is a house, condo, or apartment that is move-in ready. This means it doesn’t require any extra maintenance or improvements from investors wanting to buy.
Turnkey properties are often updated and resold to make a quick profit. Many companies specializing in restoring and selling turnkey properties also offer property management services for investing people who want to rent the property quickly.
Investing in Turnkey Rental Properties
Turnkey rental properties also make ideal investment properties as well as a reliable source of rental income. Many investors take the turnkey approach when they don’t have the time, ability, or interest to renovate a home.
Depending on your location, investment interests, and available capital, you have many options with turnkey property investment.
Benefits of Buying Turnkey Properties
When investing in real estate, it’s essential to know that turnkey properties offer many hidden advantages. If you’re an investor seeking to make a quick cash flow, a turnkey property can be the perfect way to invest your money.
Another benefit is turnkey property appreciation. When you buy a rental property, you’re purchasing an asset that can secure your future. Because as your property value increases, so does your net worth.
As an investor, your turnkey property is also a great way to benefit from extra tax deductions. Other expenses that are tax-deductible include:
- Property management fees
- Marketing fees
- Property purchases and repairs
- Appliance depreciation
Another fantastic benefit is that your turnkey property is a steady passive income, with very little work on your part.
The convenience of turnkey property is probably one of the most significant benefits. You don’t need to worry about any renovations and list it for rent immediately and watch the cash flow in.
And don’t forget that a suitable turnkey property comes with options for property management, which is essential for you to get the return from the investment you’re looking for.
Turnkey Property Management
When you invest in a turnkey property, you want it to be a hands-off experience for you. You want the cash flow to come, but without the hassles of actually managing the property. So choosing the right property management company is as crucial as your turnkey investment itself.
You can choose to use the same company your purchase your turnkey property from, but either way, you’ll need to do your research to make sure the turnkey management company will meet your needs.
Before you do anything else, get on Google and find out what other people are saying. Find out what their track record is like and see how easy they are to communicate with. The last thing you want is property management that’s hard to reach and not proactive with managing your properties.
First, you need to know precisely what the property management company is responsible for and not responsible for. Most property management companies will collect the rent for you, conduct tenant screenings, and provide after-hours emergency services.
You also want to ask how your property will be marketed. A good property management company will utilize all the major search sites like Trulia, Zillow, Hotpads, Craigslist, and Homes.com.
You’ll also want to make sure the marketing stays at the homeroom with a FOR RENT sign and daily emailing local prospects. And make sure to find out how long a company’s average vacancy times are.
These rates can vary, but ideally, you don’t want to see your home sitting vacant for more than 60 days without additional marketing measures being taken.
Property Management Fees
And don’t forget to ask about the fees. On average, a typical property management company will charge a percentage of the monthly rental value of the property. At the same time, other companies may charge a flat monthly rate.
Also, make sure you ask about any fees for maintenance, evictions, vacant units, or new tenant placement.
Tenant Screening Process
You’ll also want to find out about what type of tenant screening process the company uses. You’ll want to make sure the process includes things like:
- Verification of income is a minimum of 3x the rent
- Proof of utilities in the tenant’s name
- Rental history with no evictions or judgments
- A solid reference check
- A criminal background check
- A credit check
A process should also be in place for when one of your tenants doesn’t pay rent. Most of the time, rent is considered late after the 5th of the month, and you want to be sure the company you choose works to ensure rent is collected.
Invest in a Turnkey Property
Choose Memphis Investment Properties when you’re ready to invest in your turnkey property. We have the best Memphis turnkey properties to choose from and offer high-quality property management services.
Memphis Investment Properties began buying and managing properties in 1979, and today we have over 85 employees.
So contact us today and invest in your future tomorrow.